Astorg Mid-Cap acquires a majority stake in hg medical

hg medical is a leading end-to-end contract manufacturer of high-quality orthopaedic implants that improve the quality of life for many patients with complex orthopaedic cases. It is particularly focused on innovative systems that address lower extremities disorders. With facilities in Germany and USA, the Company has built a strong reputation for its deep engineering expertise in its core segment, high-quality manufacturing, and exceptional customer service. With its team of experienced engineers and technicians, hg medical offers a comprehensive range of services, including design and development, prototyping, validation, and production of complex high-quality implants.

The Company is a pioneer in the extremities segment and has built an impressive track record of customer success and profitable growth through its partnerships with fast-growing challenger and blue-chip OEMs in the extremities space over the last 16 years. In 2020, hg medical was acquired by NORD and its management team, led by CEO and founder Johannes Hagenmeyer and COO Craig Bluett.

Florian Luther, Partner and Head of Astorg Mid-Cap Germany commented: “This is Astorg Mid-Cap’s first investment in Germany and, after the investment of our flagship fund Astorg VIII into Corden Pharma last year, the second transaction of Astorg in Germany since we opened our Frankfurt office in 2022. We are pleased to partner with the management team for the next stage of growth. Over the last decade, they have transformed hg into a customer-centric and solution-driven organization with outstanding engineering capabilities and manufacturing excellence.”

Edouard Pillot, Managing Partner and Co-Head of Astorg Mid-Cap added: “Hg medical will be a terrific addition to Astorg’s portfolio and a great fit with our Healthcare strategy focused on MedTech, Pharma Services and Life Science Tools. It is Astorg Mid-Cap’s second investment in Healthcare and it will benefit from Astorg’s experience in CDMO as well as our broader MedTech ecosystem. hg medical’s contribution to people’s well-being is also in line with Astorg’s impact commitment, one of our four sustainability pillars. We look forward to working with Craig and Johannes to scale hg’s platform across the most attractive and demanding orthopaedic applications.”

Andre Seidel, Partner of NORD said: “We are extremely proud and impressed by the development of hg medical over the last years. The NORD Holding healthcare team, NORD Holding operations team and management took hg medical to the next level by enhancing financial transparency, optimizing processes and increasing production capacity for future growth. We are also very happy as hg medical was one of our first investments based on our dedicated healthcare sector approach.”

With the global demand for orthopaedic implants on the rise, hg medical is well-placed to continue its growth trajectory and maintain its position as a leading player in the industry. Astorg’s investment will enable the Company to continue expanding its capacities and service offering to serve the increasing demand for outsourced production in the orthopaedic space, while actively executing an external growth strategy in a fragmented market.

Johannes Hagenmeyer, CEO and founder of hg medical said: “I would like to thank NORD Holding for their significant contribution to help establish hg medical as a leading contract manufacturer in extremities and spine. In line with our succession planning and the years spent preparing, Craig Bluett will take over as CEO while I move into an Advisory Board role. As an advisor I will be available to offer my support, guidance, and experience, whenever needed as the company continues its remarkable growth trajectory. Astorg aligns perfectly with hg medical´s vision: become the reference high quality contract manufacturer for orthopaedic and trauma implants for extremities and spine. To say I am beyond proud to have Astorg on hg’s side now would be an understatement.”

Craig Bluett, COO of hg medical said: “I am very grateful for the trust placed in me by both Johannes and Astorg. It is a privilege and responsibility I take extremely seriously as I accept the role of CEO, to fulfil our goal of becoming the world’s premier contract manufacturer of orthopaedic implants for the extremities and spinal sectors. Astorg will be the perfect partner for hg medical as we continue to evolve and expand both our capabilities and capacities, to support our customers and continue to increase value-add.”

The terms of the transaction were not disclosed.

Astorg was advised by Houlihan Lokey (M&A), Gibson, Dunn & Crutcher, Reed Smith and Kirkland & Ellis (legal), L.E.K. (commercial), EY (financial, tax and cybersecurity), EURO Transaction Solutions (insurance) and ERM (ESG).

NORD Holding was advised by TD Cowen (M&A), Milbank (legal), Alvarez & Marsal (commercial), Deloitte (financial), Flick Gocke Schaumburg and Alvarez & Marsal (tax), and TAUW (ESG).